The P/E ratio is a significant indicator of a stock's valuation. AutoZone's lower P/E ratio compared to its industry peers could be interpreted in two ways: the stock might be undervalued, which could lead to increased investor interest, or it might reflect lower growth expectations, which could deter some investors. Given the stock's positive performance over the past year, the undervaluation perspective might have a stronger influence in the short term. However, the impact is likely to be moderate as the P/E ratio is just one of many factors investors consider.